rm is a basic UNIX command used to remove objects such as files, directories, device nodes, symbolic links, and so on from the filesystem. To be more precise, rm removes references to objects from the filesystem, where those objects might have had multiple references, and the objects themselves are discarded only when all references have been removed and no programs still have open handles to the objects.
This allows for scenarios where a program can open a file, immediately remove it from the filesystem, and then use it for temporary space, knowing that the file's space will be reclaimed after the program exits, even if it exits by crashing.
rm generally does not destroy file data, since its purpose is really merely to unlink references, and the filesystem space freed may still contain leftover data from the removed file. This can be a security concern in some cases, and hardened versions sometimes provide for wiping out the data as the last link is being cut, and programs such as shred are available which specifically provide data wiping capability.